Read time: 2 minutesExecutive Briefing #7 by Jeffrey Cullen
I recently did some consulting for two non-competitor clients in the same industry. As I was doing research for the second client I found an excellent blog post that identified and discussed the fundamental performance metrics for their industry. I forwarded a copy to each client.
Client #1, whom I had done a project for the year before, thanked me for the information and advised me that the management team was very familiar with these key metrics and had been collecting data and using them to manage their company for years.
Client #2 also to thanked me, but told me that these metrics were all very fine and good but, who had time to collect all of this data when there were sales to be made, staff to be managed and product development to be pushed along? As busy as they were, there was simply no time to spend on this kind of activity.
The interesting thing to me was the state of the two companies. While the 2nd client was seeking help to complete a stalled product development project; increase company revenues to at least meet the industry benchmark and find ways to escape having to make every single decision themselves; the 1st client had turned over most of the daily management of their growing company to a team of senior managers and was seeking funding to launch a new venture that would be a complimentary business to the first one.
Although many factors may have contributed to the differences between the two organizations, I can’t help but believe that Client #1 has achieved greater success because of their investment in and application of key performance metrics. They took the time to not only understand the fundamentals of their business, but they managed performance through the use of those metrics.
So I urge you to ask yourself: “Would my business perform better through the active measurement and use of industry metrics as a management tool”? “Yes” is your answer, the next step is to move to action and use them.